Buried in this court document on pages 102-105, Jim Little & the company have an agreement letter of 4.8% equity for TWU.
http://www.amrcasein.../4131_15463.pdf
http://www.amrcasein.../4131_15463.pdf
TWU gets 4.8% equity
- Thread starter AAmechanic
- Start date
Assuming that the APA eventually signs an agreement during the Ch 11 case and gets its 13.5% claim, the disparity in the size of the claims is stunning. The TWU claim is just slightly more than 1/3 the size of the stake offered to the pilots, yet the TWU represents more than twice as many members. On a per-pilot basis, the claim rejected by the APA would be worth at least six times more per pilot, on average, than the per-TWU member claim, on average.
The 17% cost savings demanded of the TWU was a larger sum than the 17% demanded from the pilots, as the TWU-represented employees cost, in the aggregate, more than the pilot workgroup. Either AA offered an exhorbitantly large claim to the pilots or AA offered an extremely stingy claim to the TWU-represented workers.
The 17% cost savings demanded of the TWU was a larger sum than the 17% demanded from the pilots, as the TWU-represented employees cost, in the aggregate, more than the pilot workgroup. Either AA offered an exhorbitantly large claim to the pilots or AA offered an extremely stingy claim to the TWU-represented workers.
787nightmare
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- Aug 28, 2010
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"Either AA offered an exhorbitantly large claim to the pilots or AA offered an extremely stingy claim to the TWU-represented workers."
I'd bet the latter............played 'em as the buffoons that they are.
I'd bet the latter............played 'em as the buffoons that they are.
Hopeful
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- Dec 21, 2002
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TWU informer
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- Nov 4, 2003
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"Apportioned by the TWU" without inteference is REAL BIG PROBLEM!
We need the court order to cover the distribution of this equity stake.
We need the court order to cover the distribution of this equity stake.
So what does this mean? Are we getting shares of stock again? If so how will it be calculated has to who gets what?
How about the rest of the non-union employees have their percentage and/or equity been decided
NYer
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- Jun 4, 2010
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You guys need to research these things and read the laws. An equity stake is based on the amount of losses incurred by the Unsecured Creditor due to the bankruptcy. It not based on how many people are involved or anything to do with a union and a company negotiating an amount. The equity stake for the pilots will be much larger than the other unions because they are taking a much larger hit than the other unions. The Pension piece is probably the biggest disparity since most of us would still qualify to get the maximum allowable from what we've accrued or earned. The pilots have lost substantial value in their potential payouts, which includes the loss of the "lump sum" option. The numbers paid out to each Unsecured Creditor is also subject to Court approval and can be challenged by the other UCC members. Since these amounts are stipulated as part of the agreements, they have already been approved by the UCC and will not garner a challenge from that group.
NYer
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- Jun 4, 2010
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Equity payouts are based on the losses incurred by the specific Unsecured Creditor and not subject to unsubstantiated negotiations. The pilots are losing a lot more value from their contracts than anyone else, therefore their claim is larger than anyone else. And the payouts have to be approved by the other UCC members and not subject to AA's whim of who gets what.
Yes, but much of that disparity was there before the bankruptcy. AA provided the pilots a Defined Benefit (the "A plan") plus AA contributed 11% to the Defined Contribution "B plan." The pilots didn't have to contribute anything to it, so the word "match" has never been a part of the pilot retirement. The pilot LBO ups AA's contribution to 14% (from 11%) to make up for the freezing (or possible termination) of the A plan.
Everyone else had the DB plan and that's of course replaced by the somewhat stingy 401k match.
Buried in this court document on pages 102-105, Jim Little & the company have an agreement letter of 4.8% equity for TWU.
TWU Equity Claim likely includes the potential cost to American of unresolved grievances which haven't been arbitrated yet, or were awarded after the Bankruptcy filing date. The recently arbitrated Tulsa outsourcing case is one example.
TWU Equity Claim likely includes the potential cost to American of unresolved grievances which haven't been arbitrated yet, or were awarded after the Bankruptcy filing date. The recently arbitrated Tulsa outsourcing case is one example.
